Salesforce Seeks to Clarify Workforce Strategy Amid AI Transition

In response to recent market speculation, Salesforce has issued a clarifying statement aimed at reassuring investors. The move follows reports suggesting the company regretted its decision to cut 4,000 support roles in favor of artificial intelligence. Management has explicitly stated this characterization is incorrect.

While Salesforce confirms it reduced its support staff from approximately 9,000 to 5,000 employees earlier this year, the company frames this as a strategic reallocation rather than a straightforward cost-cutting measure. According to the clarification, a significant portion of affected support personnel were transitioned into sales roles. This shift is intended to bolster the marketing and sales efforts for its new AI suite, "Agentforce."

Confusion initially arose in August when CEO Marc Benioff commented publicly on achieving greater efficiency in support functions through AI, implying a reduced need for personnel. Many interpreted these remarks as evidence of human workers being directly replaced by autonomous AI agents.

Market reaction has been cautiously positive. Shares closed nearly flat on Monday at $266.23. Investors appear to be accepting the narrative that moving resources into growth-oriented sales positions is a calculated part of the broader AI strategy.

Should investors sell immediately? Or is it worth buying Salesforce?

Underlying Investor Concerns Persist

The episode highlights how sensitive investors are to the aggressive pace of AI integration within corporate strategies. Salesforce's performance in 2025 has notably lagged behind competitors like ServiceNow, with its stock declining roughly 22% since the start of the year.

A core tension remains: Salesforce claims Agentforce already handles 50% of customer inquiries and has reduced support costs by 17%. However, there are growing accounts of the AI system's unreliability when dealing with complex cases. The company's latest communications seem designed to signal that sufficient human expertise will be retained within its "strategic realignment."

Trading at a forward P/E ratio of 22, Salesforce's valuation sits well below its historical five-year average of 36. This discount reflects substantial market skepticism regarding the seamless execution of the Agentforce strategy.

Proof Will Be in the Performance

Whether the reallocation of 4,000 employees into sales functions will genuinely accelerate revenue growth is a question for upcoming quarterly results. From a technical analysis perspective, the $260 price level remains a critical support zone for the stock. If the company can demonstrate that its hybrid human-AI model is effective, it may pave the way for a potential recovery in share price.